5 Stocks to Buy the Dip Right Now Before New Highs

hey bow tie nation joseph hog here with your weekly stock market update 9:00 a. m eastern every monday morning with the stocks to watch and the stock market news you need to see and nation that 10% slump in the s&p 500 index the technical definition of a correction reached thursday has been much more painful for those in the fastest growing tech stocks as is always the case the market darlings turned to paras when the bottom falls out and five stocks i'm following have crashed an average 29% since the sell-off began late january and while i don't think the overall selling is quite finished i'm starting to buy the dip in the most promising tech stocks because when that rebound happens it's going to be fast and these stocks will make new highs i'll reveal each of those along with the price targets and the stocks i'm watching this week including updates to super micro computer and sofi technologies but first i'll show you those tech stocks to buy the dip next but there's also another group of stocks i'm buying in fact i call these my forever stocks because i don't even have to research them anymore i just let them run higher and the proof is in the returns with the group up an average 94% last year alone one of the picks up 100% i'll leave a link to the report on those stocks in the description below the report is totally free you're going to see that first stock immediately and it'll email you the full report with the other stocks it's an easy way to support the let's talk money community and see some of my favorite stocks to buy so look for that link below back to our main topic though and with the s&p 500 falling to 10% from its recent highs last week we are officially in a correction and while the last two years have been a one-way ride in the market these small hiccups are actually pretty frequent in data by yardin research the s&p 500 has seen 56 corrections in the last 96 years since 1929 or about one every 2 years with seven in the 17 years since 2008 financial crisis the good news is that only about four and 10 of those have seen stocks keep falling into that bare market or about 20% or more down and in those that didn't become a crash the average correction was just 13% and lasted just four months until the market reached new highs of course whenever i talk about the pain in a correction being relatively quick and light compared to the four crashes i've invested through since 2000 i always get comments to the effect that oh i've gone batshit crazy and that's because when the overall market falls 10% the pain in those high growth and those most popular stocks is always much worse like smashing your finger with a hammer but with the claw end and it's covered with lemon juice in fact the top five stocks held on robin hood including shares of palunteer and tesla has fallen an average 19. 6% over the past month just shy of that technical bare market and double the pain felt in the broader market worse still some of the highest growth tech stocks that have done so well in the bull market are giving back even more the five stocks i'll highlight next are down an average 29% since the sell-off began with three of them well into the bare market of 20% or more but while everyone else is trying to time the market's bottom worrying about how much worse it can get smart investors are looking at that 20 and 30% discount in growth stocks and thanking their luck nation i never understand it when the market and stocks are making new highs everyone wishes they had bought in at cheaper prices but when those cheaper prices come everyone's too scared to take them now i'm not suggesting that you jump in on every stock that's down 20% or that the market won't give back another 5% or more now this selloff likely has a couple of months and a few more percent to go but there are none of the hallmarks of a bare market and that means opportunity to buy the dip that's why i'm looking for tech stocks those expected to continue posting those 20% plus revenue growth in that in the ai and the other growth themes that are now trading at much more attractive valuations than just a few months ago and the first stock i'm buying here is the biggest loser the trade desk ticker ttd down 54% this year tradeesk is a leader in e-commerce advertising with more than 10% of the cross device ad targeting category and any market leadership in that digital ad market is going to mean huge growth tradeesk estimates the digital ad market at just $135 billion a fraction of the $900 billion global ad market the company beat earnings expectations by a long shot and reported revenue up 22% on the year but missed their sales forecast last quarter sending the shares diving but sales are still expected to grow 18% plus this year and next on $2.

9 billion in expected revenue this year their shares are now trading under a 10 times price to sales valuation for the first time i can remember in fact the stock generally trades twice as expensive above 20 times on that price to revenue and here a stock i've been wanting to buy but always seemed too expensive service now ticker no down 25% since the january high agentic ai that business automation and assistance that have been the first real use cases in artificial intelligence is just getting started and is going to be the next evolution in the theme service now holds a competitive advantage and is ranked number one or number two by market share across this theme in it operations project management and asset management that means the company will lead in that transformation to robotic processes already working with over 8,000 global customers and with a 98% retention rate and here again sales are expected to grow at a healthy 19% pace through next year with 2025 forecast for 13. 1 billion in revenue the price has fallen to 16 times on reported sales well under the valuation over the last year it's not cheap like a screaming buy but on this year's forecasted revenues would be just 13 times the price to sales which is a very good deal for this stock another stock we've been watching in this ai theme this one getting crushed 35% from mid january shares of arista networks took her a&e i've detailed how networking equipment is likely to be the next big constraint the big bottleneck in ai that sends prices higher and arista is the data center switching leader specializing in the kind of high-speed low latency networking that that those ai data centers need its eos software is a key differentiator offering better programmability automation and scalability compared to maybe cisco's legacy systems and that single unified operating system means better reliability automation and scalability across all of anet's products that networking demand should keep arista growing at that 19% forecasted rate this year and next with 8. 4 billion in revenue expected for fiscal 2025 the sell-off has already taken shares down to 15 times on a price to sales basis but on that expected growth are trading even more cheaply at just 12 times multiple for the cheapest it's been in years and here's one of my favorite stocks in that data center ai theme broadcom inc to ticker avgo now down 19% from its january high and again while i've highlighted that networking equipment theme as the major bottleneck in the ai data center buildout broadcom is the best all-around ai play here not only does broadcom dominate that networking theme with its ethernet switches and network processes the company supplies data storage solutions with its raid and tryode controllers its as6 and custom silicon also support hypers scale ai workloads and a hardwarebased security is available through its tpm chips while revenue growth is expected to slow to 16% next year i think it keeps it closer to that 20% pace forecasted this year on that dominance in data center infrastructure even on the $63 billion in expected sales this year though the shares are now down to 14.

6 times on that price to sales valuation now that's not quite as cheap as some of the others here on the list but still a very good deal considering where broadcom usually trades at and my favorite in the cyber security theme crowdstrike holdings ticker crwd is still up for the year but down 22% from its february high i started buying crowdstrike after that massive outage last year when researching the company found that its falcon platform is the best available for enterprise protection its ai native security is driving a 27% growth rate in annual recurring revenue a subscription revenue that is extremely sticky and just keeps growing crowdstrike is leading in the kind of ai powered security that i think is going to be the next evolution in that theme with the detection speeds fast enough to stop those aidriven threats the cyber security stocks haven't been affected by the ai fears around deepseeka and that demand should continue to grow no matter what happens to the data center infrastructure demand with forecast here for crowdstrike to grow at a 21% pace this year and next the sell-off has been relatively lighter here too though with the stock still trading at 21 times on that price to sell basis and even on this year's $4. 8 8 billion forecasted revenue on an 18x multiple so this one isn't quite as cheap as the others but is still a buy the dip opportunity looking at the stocks i'm watching this week and the proshares ultra gold ticker ugl is up 4% in a week following our video march 5th as gold reaches that new record over $3,000 an ounce and providing investors with that traditional safety haven this year you've got three key factors here for gold first central bank buying around the world as leaders try to break the dollar's dominance as a reserve currency then you've got investor demand in the stock selloff and a stated policy goal of dollar weakness by the trump administration it's all like a trifecta for gold and we're likely to keep seeing that price rise another option here gold miners in the vanc miners etf the ticker gdx are up 22% since recommending them in a video mid november for stocks that beat inflation also watching super microcomput ticker smci was easily one of the most volatile stocks last year but is now protecting investors from the worst of the sell-off shares have found support around $40 each and are flat over the last month versus an 8% loss on the s&p 500 and an 11% plunge in tech stocks on the nasdaq 100 it doesn't mean the smci is totally out of the woods here but really the only two overhangs are that department of justice probe and the overall market worries on demand for ai infrastructure now i expect the doj probe to be wrapped up soon with no smoking gun against the company and hyperscalers like amazon alphabet and meta are still planning on spending hundreds of billions of dollars to build out those data centers my $70 plus price target for the shares is supported by the company's advantage in that ai server space and the still low valuation on the shares should continue to support the price even if the market falls further soi technologies ticker sofi continues to be a little too expensive for me to pick up new shares even after the 30% crash but announced news last week that should keep growth booming to reaching new highs eventually the online bank announced a $5 billion funding program through blue owl capital to be used to originate new loans this follows a $2 billion agreement with fortress investment group in october and means all the liquidity the bank needs for new loan growth sofi reported 34% member growth and 24% revenue growth last year which is even more impressive when you compare it against six to 8% growth of those legacy banks like bank of america revenue is expected to continue at that 20% pace this year and next to $3. 8 billion next year and while i continue to hold 15,000 shares one of the largest positions in my portfolio and up $74,000 on that position still hesitant to add more at this price their shares are traded at an expensive 1.